Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [9][10]. Core Insights - The company, Xi'an High Voltage Electrical Research Institute, is a leader in high voltage electrical testing, benefiting from a strong market position and competitive advantages in technology, team, and international standards [6][9]. - The electrical equipment testing market is expected to grow significantly due to the application of new technologies and products in the new power system, with the company poised to benefit from this trend [9]. Company Overview - The company was established in 1958 as part of China's key construction projects and has evolved through three main development phases: high voltage testing capability construction, ultra-high voltage testing capability expansion, and diversification of services [40][41][42]. - The company is currently a subsidiary of China West Electric and is the only listed platform for testing services under CEE [48]. Business Segments - The core business includes electrical equipment testing services, which account for 91% of total revenue in 2023, with a projected increase to 94.5% in the first half of 2024 [65]. - Other technical services include metrology, certification, and technical research and consulting, contributing to the company's diversified service offerings [54][59][61]. Financial Performance - The company achieved a total revenue of 6.02 billion yuan in 2023, with a compound annual growth rate (CAGR) of 20.4% since 2020 [65]. - The net profit attributable to the parent company reached 1.6 billion yuan in 2023, with a CAGR of 35.6% from 2020 to 2023 [71]. Industry Context - The electrical testing industry has shown steady growth, with the number of institutions increasing from 259 in 2016 to 597 in 2023, reflecting a CAGR of 12.7% [7][78]. - The industry revenue grew from 3.207 billion yuan in 2016 to 12.558 billion yuan in 2023, with a CAGR of 21.5% [7][78]. Competitive Position - The company maintains a significant competitive advantage, with its revenue in 2023 reaching 6.02 billion yuan, far exceeding the industry average of 0.21 billion yuan [7][83]. - The company holds approximately 5% market share in the electrical testing sector, with a strong historical foundation and technological leadership [7][85].
西高院：高压电气检测龙头焕新发展